Technology and Internet stocks battled back from a steep opening plunge on Friday after PMC Sierra guided estimates sharply lower. Stocks turned around after former Fed official Alice Rivlin said she expects a half-point rate cut from the Fed next week.

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The Nasdaq 100 bounced off its broken September downtrend line this morning (first chart), a good sign for the bulls. The S&P 100 is also comfortably above its downtrend line (second chart). The ability to weather a warning from a high-flyer like PMC Sierra is a big plus.